TRADE POLICIES OF SRI LANKA

Sri Lanka introduced its trade liberalization policies in 1977, well ahead the rest of South Asian countries. Since then Sri Lanka implemented series of unilateral measures to simplify country’s tariff structure to a large extent.

The foreign trade policy, which continues with the process of further liberalization of the country’s current trade regime, aims at integrating Sri Lanka with the global economy.

The tariff policy of the government aims at providing a transparent and predictable frame work for all stake holders in the foreign trade sector.

Based on product categories, Sri Lanka maintains a four band tariff structure at present:

·       Basic Raw materials and Machinery 0%

·       Intermediate Products 15%

·       Finished Products 30%

·       Semi Processed goods 5%

Sri Lanka has granted preferential tariff benefits to a wide range of products imported under the following trade agreements/arrangements:

·       The Generalized System of preferences (GSP)

·       Indo – Sri Lanka Free Trade Agreement (ISFTA)

·       Pakistan – Sri Lanka Free Trade Agreement (PSFTA)

·       SAARC Preferential Trading Arrangement (SAPTA)

·       South Asian Free Trade Area (SAFTA)

·       Asia Pacific Trade Agreement (APTA)

As a founding member of the GATT, Sri Lanka remains fully committed to the WTO by pursuing an outward-oriented multilateral trade system.

Notwithstanding the important domestic and external challenges, Sri Lanka continues to be a land of opportunity with great

potential for trade and investment